Well it appears the US stock market has a bad case of the Asian contagion.
Between Friday’s trading and Monday morning’s opening the Dow has taken 1,000 points off the top as the outbreak of Covid-19 spreads to South Korea and Italy. The price of gold however is up more than $150 in the last week.
As I have written earlier the economic impact of the coronavirus outbreak will be harsh on the US as Chinese manufacturing continues its shutdown.
Reports out of Venice, Italy says the city has suspended its centuries old Carnivale celebrations due to the soaring number of cases in the country.
At this rate, we could see the scheduled Summer Olympics in Tokyo in jeopardy of being cancelled as well.
In an early Monday morning briefing by the World Health Organization, the UN agency appeared to be telling the press that China was taking all proper actions to stem the potential pandemic. WHO also stated that they were still exploring whether the virus outbreak was linked to bats.
However that sounds more like government propaganda that an honest assessment of the situation.